Things Look Good For Sirius XM Radio Inc (NASDAQ:SIRI)
Last week, David Frear, Sirius XM Radio Inc (NASDAQ:SIRI)’s Chief Finance Officer, presented at the Leveraged Finance Conference organized by Deutsche Bank and offered some data points that provided some interesting insights into the company. The company says that there are now over 50 million cars that have either Sirius or XM receivers and a little more than 50% of them are active-subscribers of the company’s service. The CFO averred that they expect there to be 150M cars that will have factory-installed receivers, within the next 10 years.
It is not necessary that all of them will actually be subscribers but the fact that it opens up a potential user base of a whopping 75M premium radio users is attractive enough. This number may expand even as growth opportunities increase. If the company does things right it might just be able to convert a large percentage of that potential customer base into active users.
Another thing that Frear talked about how it is an incorrect assumption that mobile and connected cars will actually disrupt the workings of the company. He indicated that 140M smartphones have hit the U.S market over the last 4 years and that they have not felt any negative impact.
Friday’s trading session
In Friday’s trading, Sirius XM Radio Inc (NASDAQ:SIRI) rose by 0.77%. The shares opened at a price of $3.93, climbed to an intraday high of $3.97 and dipped to a close of $3.95. Approximately 26.72 million shares were traded on Friday while an average volume of 36.40 million shares were traded over a 30 day period. The 52-week low of Sirius XM Radio Inc (NASDAQ:SIRI)’s shares is $2.55 and its 52-week high is $3.99.
About the company
Sirius XM Radio Inc (NASDAQ:SIRI) broadcasts its entertainment, sports, talk, news, comedy, music, news, weather and traffic channels in the U.S on a subscription-fee basis via its 2 satellite-radio systems.